The stock markets seems to have given a major thumbs up to Arun Jaitley’s budget as the Sensex rallied 486 points today and crossed 28,000. The Nifty 50 crossed 8,700 mark today and closed above it first time since October last year.
The market participants believed that the government did their best to balance the demand, expectations and requirements. The budget had something for everyone.
The budget was focused on 10 broad issues — farmers, rural population, youth, poor and health care for the underprivileged, infrastructure, financial sector for stronger institutions, speedy accountability, public services, prudent fiscal management and tax administration for the honest.
The analysts indicated that major reasons for today’s rally in the indices were a) no change in the Long Term and Short Term Capital Gain Taxes, b) Increased focus of Government on Infrastructure Spedning and c) Fiscal prudence shown by the Government.
This budget hailed as the budget of the poor and a complete package for all sectors. The budget indicated that the demonetization will bring transparency and lead to higher GDP growth. The negative impacts of demonetization will not spill over next year.